Who doesn’t get excited about buying a brand new car? While buying a new car is always alluring, a smart consumer will take a hard look at the cost savings of buying a new vs. used car and consider value and depreciation.

It is true that on average, a new car will depreciate by as much as 11% the second you drive it off the lot, and it will lose up to 30% of its total value in the first year. By the end of year 3, you can lose up to half of the original price you paid for your brand new car.

Used cars, on the other hand, don’t depreciate as fast. Say you bought a car that’s 3 years old for $15,000. You could still sell it for $10,000 three years later, so it will depreciate only by $5,000. Comparing apples to apples, buying a used car results in considerable savings from a long-term perspective.

Traditionally, buying a used car comes with a few stigmas, which aren’t always accurate. Let’s take a look at some of these myths and try to debunk them.

Myth#1: Buying a used car is a way to buy someone else’s problems.

This is not true anymore. With an average car traveling 10,658 miles annually according to AAA,

it can last up to 11.5 years. And it’s not uncommon for a car to deliver more than 100,000 miles before acquiring major repairs. So when you buy a 3-year-old vehicle, it doesn’t necessary inherit any major problems, unless they were caused by a prior accident, factory error or a defect.

Myth#2: Used cars require more maintenance.

In today’s world, it doesn’t matter if you own a new or an old car. All cars require routine maintenance including oil change, tire rotation and brake checkups. The reality is that the majority of cars are built to deliver more miles between scheduled service visits now than a decade ago. With high-quality materials such as synthetic oils, tires and brakes you can rest assured that your used car won’t need extra maintenance.

Myth#3: There’s no way to know if the car is reliable.

This is also not true. Every car has its own VIN number and you can easily look up a vehicle’s accident and service history online to determine its quality. In addition, many dealers offer limited warranties and service contracts to help you avoid costly repairs in an effort to increase the reliability of your car.

While buying new cars has its own benefits including advanced technology, a wide variety of financing options, ease of shopping and prestige, buying a used car is a sure way to save money without jeopardizing quality and reliability.

Some other benefits of buying a used car include:

• Lower car insurance rates: when a vehicle is worth less, it costs less to ensure.
• Less expensive registry renewals: the cost of registering a used car goes down every year.
• Luxury cars become more affordable: since used cars cost less, you have more room in your budget for a higher class vehicle.
• Less worry: since the resale value of a used car essentially stays the same, you don’t have to worry about scratches or dents, or obsess over keeping your car spotless.

With the pros and cons of buying new vs. used car described in this article, considering a used car may be the right option for those who are looking to save on car payments. Used cars are safe, reliable, fuel-efficient and cost a lot less than brand new vehicles.

When making a decision about buying a car, do your research and read reviews to make sure the model you choose is reliable and safe. And if you are borrowing money to purchase your car, spend some time shopping around for the best possible loan.